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Alltrue subsidiaries close following FSA investigation

By BFN News | 05:29 PM | Friday 29 January, 2010


Alltrue Investments says that administrators have been appointed to its two operating subsidiaries Falcon Securities (UK) and Montague Pitman Securities. The Company says that the action follows a review by the FSA of Montague Pitman's activities in particular in relation to advising on, and arranging the sale of higher risk securities to retail clients. Montague Pitman is liable to pay compensation to clients in respect of any mis-selling claims that are up held. However if Montague Pitman's assets are insufficient to cover identified liabilities then Falcon, as the Regulated company becomes responsible. Given these circumstances, the directors of each of Falcon and Montague Pitman have concluded that both businesses have insufficient assets to meet potential future liabilities. Alltrue says it is considering a number of possible courses to restore shareholder value and the Company will therefore publish a circular as soon as practicable setting out its investing policy going forward for which it will seek shareholder consent.

Story provided by Business Financial Newswire


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